Financial Information and Services
Financial Information and Services
To request payments for independent contractors performing services (and the other special payments mentioned in Section I.D and I.E of this guide), departments should complete the Direct Payment Voucher or DPV (including the special Independent Contractor section on the right side of the DPV). Completed DPV's for Independent Contractors should be sent to the Independent Contractor's Desk, Payroll Department. Note: DPV's to pay businesses for purchased goods should be sent to the Accounts Payable Department.In addition to the DPV, various documentation should also be forwarded to the Independent Contractor Desk - specifically, a completed Request for Taxpayer Identification & Independent Contractor's Residence Statement for Tax Withholding Form (Comptroller Form 26, revised 2/92), Independent Contractor Questionnaire and a list of business clients. The independent contractor determination should be made prior to actually hiring the individual. This is accomplished by having the individual complete the Independent Contractor Questionnaire and provide a list of clients before he/she commences services.
Foreign individuals or organizations must complete the back page of the Form 26. In some cases, these Foreign individuals or contractors may have to furnish additional forms and documents: I-94 passport stamp, Form 8233 for tax treaty exemption, immigration visas and other authorizations for U.S. employment (for more information, refer to Section III of this guide.).
If the DPV payment to the contractor is charged to a sponsored grant account (Ledger 5 & 6 Accounts), the original Sponsored Consulting Invoice and a copy of the Sponsored Consulting Agreement must be attached to the DPV. If the payment is not charged to a sponsored grant account, attach a copy of the written agreement or contract between the contractor and the University. Copies of these agreements must also be attached to the DPV and forwarded to the Payroll Office. Brief descriptions of these forms are furnished below.
III.A. The Direct Payment Voucher (Form 88R)
For tax purposes, all information in the "Independent Contractor Payment" section on the right side of Form 88R must be completed when requesting payments for Independent Contractor and miscellaneous income. If this section is not filled out, the form may be returned to the department submitting the request; this will delay the date that the contractor receives payment.Most of the information needed to complete this section is found on the Form 26: the independent contractor' address, Social Security or FEIN number, statement of payment and residence. The contractor must complete the Form 26 and return it to your department. You must send the Form 26 with the completed DPV to Payroll. Note: the contractor's address that is listed on the DPV is the address to which Payroll will mail tax documents in January. DPV's which list the contractor's address as a Faculty Exchange or on-campus addresses will not be honored.
All persons, whether U.S. citizens/residents or nonresident aliens, being paid through the Independent Contractor Procedures must complete the Comptroller Form 26. In addition to consulting and/or other service fees, independent contractor payments are made to individuals receiving honoraria, one-time lecture fees, human subject fees, some prizes and awards, royalties, or permission fees. Form 26 must be attached to any direct payment voucher submitted to the Payroll Department for the above listed payments.The Internal Revenue Service requires the university to verify information pertaining to those who perform independent personal services. The Form 26 serves as the Taxpayer Identification Number Certification equivalent to the IRS Form W-9 which requests the Taxpayer Identification Number (TIN) from individuals or organizations performing independent personal services. The Form 26 also requests Independent Contractors and recipients of miscellaneous income to provide important information which helps the payroll department determine the tax withholding status of Independent Contractor payment recipients.
On the back of the Form 26 are questions for citizens of foreign countries who have rendered services to the university. All workers who answer "No" to Section III, Question 7, on the Form 26 must answer the questions about immigration status on the back of the form. (Information about alien individuals is provided in Section III of this manual.)
Please be aware that anyone being paid for services rendered as an independent contractor must sign this form twice-first, under the section labeled "Certification of Information Provided on Form", and again, under the "Independent Contractor Certification". Persons receiving honoraria, one-time lecture fees, human subject fees, rents, prizes or awards, royalties, or permission fees are not required to sign the "Independent Contractor Certification", but must sign the "Certification of Information Provided on Form."
This form must be completed and signed by the individual or an authorized representative of the corporation receiving payment. The department requesting payment is responsible for ensuring that all forms are completed and signed by the independent contractor to be paid, before payment requests are submitted.
The Independent Contractor Questionnaire must be completed by any individual providing independent personal services and attach a list of other clients. Usually a list of three to five clients is sufficient. Once completed by the individual providing the service, the departmental administrator must complete the box at the bottom of the form.
The reason we ask for this information; the Form 26, the questionnaire and list of clients, is to support our decision of classifying the individual/business as an Independent Contractor. Direct Payment Vouchers submitted without these forms will not be honored. Unsigned or otherwise incomplete forms may significantly delay processing of payment requests.
Click here to see a helpful chart showing the Forms Needed to Process Independent Contractor Payments
Click below to see examples of Independent Contractor forms
W-9 Request for Taxpayer Identification Number and Certification
W-8BEN-I, Certificate of Foreign Status of Beneficial Owner for United States Withholding
